The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 25 basis points, increasing it from 27.25% to 27.50%. All 12 committee members unanimously supported the adjustment, aimed at addressing persistent inflationary pressures.
CBN Governor Olayemi Cardoso, while announcing the decision, noted the year-on-year increase in headline, food, and core inflation in October 2024. He attributed rising food and energy prices, as well as higher costs of premium motor spirit (PMS), as key drivers of inflation.
The MPC highlighted its optimism regarding improved security in the Northeast, which could enhance food production, and expressed confidence that the full deregulation of the downstream petroleum sector would stabilize prices in the medium term.
The committee reiterated its commitment to tackling inflation and ensuring economic stability, while commending government efforts to address challenges affecting production and distribution.
